Murray Goulburn Co-op has played the foreign ownership card in a last ditch attempt to garner support for its $174 million takeover offer for Warrnambool Cheese & Butter.

In a letter sent to Murray Goulburn shareholders yesterday, chairman Grant Davies claimed many Warrnambool shareholders supported a move to a co-operative structure, “particularly if this protects them from foreign ownership in the future".

“Murray Goulburn is the last remaining Australian owned dairy co-operative operating across the supply chain," Mr Davies said. “Consequently, Murray Goulburn’s future success is fundamental to the success of farmers in the dairy industry."

Murray Goulburn is intent on pursuing Warrnambool despite receiving three rejections from the Victorian processor in three months. The group faces competition from Canadian dairy processor Saputo, which approached Warrnambool in December and was also rejected.

Warrnambool said last week Murray Goulburn’s revised $4.35 a share offer failed to recognise the value of its longer-term prospects or strategic position and did not fairly share the benefits of a merger.

Murray Goulburn attempted to respond to Warrnambool’s arguments in its letter.

“We will continue to promote the merits of our proposal to Warrnambool shareholders and suppliers," Mr Davies said.